Micro Labs, the formulation and API major in Karnataka, has set apart an investment plan of Rs 190 crore for Greenfield projects. Under this a Rs 35 crore will be spent for a new plant in Mexico for finished formulations including tablets and capsules.
Micro Labs is the second company in the state after Strides Arcolab Ltd to go in for a plant in Mexico.
Micro is setting up a production unit for exports in Bangalore at the Bommasandra Industrial Area, which will be built as per USFDA and UK MHRA norms. The facility requires Rs 80 crore investment and will manufacture ointment, tablets and capsules for all dosage forms. The construction will be completed over the next two years.
With the commissioning of this plant, the company's exports to the regulated market will go up from the present 40 per cent of the total export earnings of Rs 325 crore to around 65 per cent, stated Dilip Surana, managing director, Micro Labs in an interaction with Pharmabiz.
In addition to this, the company which acquired land in Sikkim in April 2008 is investing Rs 75 crore for tablets and capsules unit. The facility will be a WHO GMP compliant unit for the domestic market. The reason to invest in the orchid state is to capitalize on the 10 year tax benefit. We are looking at a revenue of Rs 1,000 in 2009-10, from the domestic markets. Last fiscal, we generated Rs 600 crore from national sales market, stated the Micro Labs chief.
The company is sourcing its finances for its Greenfield initiatives from internal accruals.
In the area of research and development, Micro Labs made a Rs. 110 crore investment. The R&D centre at Mumbai is expected to be commissioned in September end or early October. This will focus on advanced research projects which is the ANDA (abbreviated new drug application) for the regulated markets.
The Bangalore R&D centre located at Kudlu in the outskirts of the city has seen an infusion of Rs 50 crore. It will focus on research requirements of the regulated and non regulated regions besides concentrate on augmenting the drug pipeline for the future.
As part of its inorganic growth efforts, Micro Labs is scouting for potential acquisitions of a good value both in India and abroad. The company which had plans to go public is still waiting for the right time to raise additional funds for further expansions.